Published: 03 January 2024
The Dollar was quick out the traps this year, gaining largely against the Pound and the Euro throughout yesterday’s trading session. Risk sentiment change has seen the Dollar gain back some of the losses suffered after the Fed rate cut narrative come into play at the end of 2023. The recent Dollar strength is due to the US Navy shotting down two anti-ship missiles and sinking three small boats after responding to distress calls from a container ship that was attacked twice by Houthi rebels as it crossed the Red Sea over the weekend, Iran then sent warships into the Red Sea after the US strikes in retaliation. Last time the Red Sea saw any issues, the blockage of the Suez Canal, the incident put huge inflationary pressure on the global economy.